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Rick wrote:
> "Steve Cerruti" <steve_cerruti@yahoo.com> wrote in message
> news:1135255676.698518.162910@f14g2000cwb.googlegroups.com...
> > Suing for return of the increase in the assessment since the board had
> > no authority to increase the assessment at this time without member
> > approval.
>
> Are you saying that member approval is needed every time a modest fee
> increase is levied? I'm no expert, but I find that very hard to believe
> since most HOA's do not have that restriction. From California's
> Davis-Sterling Act:
No, that isn't what I'm saying. I'm saying that HOAs should follow
the law and create a budget and determine what the assessments should
be for the coming fiscal year. If they want to delay an increase of the
assessment until the calendar year I've no problem with that, but
they better have a budget and an assessment strategy in place at the
beginning of the fiscal year.
What possible reason could a board have for increasing assessments
during the middle of a fiscal year. The only reasons I can think of is
that they either a) failed to budget properly or b) had unforeseen
costs. In either case the board is required to go to the membership for
permission to increase assessments. This provides protection for those
living on a fixed income from random increases in the assessments at
the whim of the board.
. It should
> > immediately trigger a full audit of the association books to determine
> > why the board has failed to create a budget that works, to determine if
> > the assessment is necessary and to ensure that no hanky-panky is going
> > on.
>
> I do not see any evidence of any of this.
Did you do an audit? An audit is to ensure there is no hanky-panky it
does not imply that there is some. You do an audit when there is
evidence that there are mistakes being made by the board, failure to
produce a budget and an out of season assessment increase are obviously
mistakes. Could the board be making other mistakes like overpaying
contractors, failing to pay other bills or filing taxes or legal
documents timely? How do you know without an audit?
>
> > The size of the increase is irrelevant, the point is that the member
> > has a right to know how their money is being spent. That is
> > accomplished by distributing the budget. How can a homeowner know where
> > the money goes for an assessment increase that isn't covered in the
> > budget? It isn't too much to ask to have the board get member approval.
>
> And no budget has been distributed in the last year?
According to prior postings the budget was not distributed to the
membership during the period in which it was, by law, to be delivered.
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